* Refer to the Basis of Presentation for a discussion of non-GAAP
financial measures.

Highlights Include:

--
Net revenue for the year ended December 31, 2016 increased 5.2 percent
over 2015 to $4.8 billion, primarily due to the impact of new business
and acquisitions, partially offset by contract terminations.

--
Segment profit for the year ended December 31, 2016 increased 9.5
percent to $301.8 million, which reflects year over year earnings
growth in both the Healthcare and Pharmacy Management segments.

--
Net income for the year ended December 31, 2016 was $77.9 million, an
increase of 147.9 percent over 2015, primarily due to higher segment
profit, lower stock compensation expense, lower contingent
consideration expense and a lower effective income tax rate.

--
Adjusted net income for the year ended December 31, 2016 was $109.5
million, an increase of 19.4 percent from 2015, mainly due to higher
segment profit and a lower effective income tax rate.

--
One of six companies awarded a contract for Commonwealth Coordinated
Care Plus Program, Virginias initiative around Managed Long Term
Services and Supports (MLTSS), which will serve approximately 214,000
individuals with complex care needs.

--
Selected as one of Fortune Magazines Worlds Most Admired Companies.

"We executed against our strategy and are very pleased with results for
the year. We increased our revenue by over 5 percent and segment profit
by over 9 percent versus 2015. In addition, we completed three new
acquisitions - The Management Group, or TMG, the Armed Forces Services
Corporation, or AFSC, and Veridicus - all of which helped to expand our
capabilities. We look forward to executing on our growth strategy in
2017," said Barry Smith, chairman and chief executive officer of
Magellan. "Id like to thank the entire Magellan team who helped to
achieve our great results this year. At every level of our Company, our
employees are committed to leading humanity to healthy, vibrant lives."

Healthcare

Segment profit for the year ended December 31, 2016 was $212.9 million
for the Healthcare segment. This represents an increase of 16.2 percent
over 2015 mainly due to improved results in the Magellan Complete Care
(MCC) business and the impact of acquisitions, partially offset by
contract terminations. Segment profit for the current year included
approximately $14 million of favorable prior period items, mainly
related to medical claims development.

Pharmacy Management

Segment profit for the year ended December 31, 2016 was $122.7 million
for the Pharmacy Management segment. This represents an increase of 4.0
percent from 2015 primarily due to growth in the pharmacy benefit
management (PBM) business, partially offset by the results in the
Medicare Part D business.

Corporate

Corporate costs inclusive of eliminations, but excluding stock
compensation expense, totaled $33.9 million, which represents a 32.5
percent increase over 2015. The increase is mainly due to higher
discretionary benefits and mergers & acquisitions (M&A) costs in the
current year.

Cash Flow & Balance Sheet

In the fourth quarter, the Company early adopted a new accounting
pronouncement (ASU No. 2016-18, "Statement of Cash Flows") that affects
the statement of cash flows. Under this new pronouncement, the cash flow
schedule reconciles changes to cash and cash equivalents inclusive of
both unrestricted and restricted balances. Implementation of the
pronouncement required us to restate previous periods to remove any
restricted cash activity from cash flows from operations.

On this new basis, cash flow from operations for the year ended December
31, 2016 was $66.7 million, compared to $157.5 million for the prior
year. This decrease of $90.8 million is mainly due to unfavorable
working capital changes and an increase in acquisition related
contingent consideration payments, partially offset by an increase in
segment profit and lower tax payments. The largest driver of 2016
unfavorable working capital is the use of cash for the Part D business
of $113.8 million, mainly related to a buildup of receivables.

As of December 31, 2016, the Companys unrestricted cash and investments
totaled $293.9 million, which represents an increase of $133.7 million
from the balance at December 31, 2015. Approximately $117.7 million of
the unrestricted cash and investments at December 31, 2016 is related to
excess capital and undistributed earnings held at regulated entities.

Restricted cash and investments at December 31, 2016 of $315.9 million
reflect a decrease of $99.1 million from the balance at December 31,
2015. This decrease is primarily attributable to the use of restricted
cash for the payment of claim and other liabilities associated with
terminated contracts as well as the release of restricted funds from the
Companys regulated entities.

Outlook

The Company is reiterating its 2017 guidance for revenue in the range of
$5.8 to $6.1 billion, segment profit in the range of $329.0 to $349.0
million, net income in the range of $90.0 to $114.0 million, and
adjusted net income in the range of $123.0 to $145.0 million.

Based on an updated estimate of average fully diluted shares of 24.2
million, the Company is revising its 2017 EPS range to between $3.72 and
$4.71 per share and adjusted EPS to between $5.08 and $5.99 per share.
This share count reflects share repurchases and option exercises through
February 22, 2017, but excludes any potential future activity.

[1] Refer to the Basis of Presentation for a discussion of non-GAAP
financial measures.

[2] 2017 EPS and Adjusted EPS guidance includes share repurchases and
option exercises through the close of business February 22nd, but
excludes the impact of any potential future activity.

The adoption of the cash flow accounting pronouncement impacts the
presentation of restricted cash in the statement of cash flows. As a
result, the Company is updating its 2017 expected cash flow from
operations to be in a range of $150 to $182 million.

Earnings Conference Call

Management will discuss the Companys fourth quarter results on a
conference call Friday, February 24, 2017 at 9:00 a.m. Eastern. To
participate in the conference call, dial 1-800-857-1812 and reference
the passcode Fourth Quarter 2016 Earnings Call approximately
10 minutes before the start of the call. The conference call will also
be available live via webcast at Magellans investor relations page at MagellanHealth.com.
A telephonic replay will be available shortly after the conclusion of
the call through March 3, 2017. This replay may be accessed by dialing
1-800-839-1248 (domestic) or 1-203-369-3356 (international). A replay of
the webcast will also be available at the site listed above for seven
days, beginning approximately two hours after its conclusion.

About Magellan Health: Magellan
Health, Inc. is a leader in managing the fastest growing, most
complex areas of health, including special populations, complete
pharmacy benefits and other specialty areas of healthcare. Magellan
supports innovative ways of accessing better health through technology,
while remaining focused on the critical personal relationships that are
necessary to achieve a healthy, vibrant life. Magellans customers
include health plans and other managed care organizations, employers,
labor unions, various military and governmental agencies and third-party
administrators. For more information, visit MagellanHealth.com.

Basis of Presentation

In addition to results determined under Generally Accepted Accounting
Principles (GAAP), Magellan provides certain non-GAAP financial measures
that management believes are useful in assessing the Companys
performance. Following is a description of these important non-GAAP
measures.

Segment profit is equal to net revenues less the sum of cost of care,
cost of goods sold, direct service costs and other operating expenses,
and includes income from unconsolidated subsidiaries, but excludes
segment profit or loss from non-controlling interests held by other
parties, stock compensation expense, special charges or benefits, as
well as changes in the fair value of contingent consideration recorded
in relation to acquisitions.

Adjusted net income and adjusted earnings per share reflect certain
adjustments made for acquisitions completed after January 1, 2013 to
exclude non-cash stock compensation expense resulting from restricted
stock purchases by sellers, changes in the fair value of contingent
consideration, amortization of identified acquisition intangibles, as
well as impairment of identified acquisition intangibles.

Included in the tables issued with this press release are the
reconciliations from non-GAAP measures to the corresponding GAAP
measures.

Cautionary Statement

This release contains forward-looking statements within the meaning of
the Securities Exchange Act of 1934 and the Securities Act of 1933, as
amended, which involve a number of risks and uncertainties. All
statements, other than statements of historical information provided
herein, may be deemed to be forward-looking statements including,
without limitation, statements regarding updated 2017 guidance for net
revenue, net income, earnings per share, segment profit, adjusted net
income, adjusted earnings per share, cash flow from operations, growth
opportunities and strategy. These statements are based on managements
analysis, judgment, belief and expectation only as of the date hereof,
and are subject to uncertainty and changes in circumstances. Without
limiting the foregoing, the words "believes," "anticipates," "plans,"
"expects," "may," "should," "could," "estimate," "intend" and other
similar expressions are intended to identify forward-looking statements.
Actual results could differ materially due to, among other things, the
possible election of certain of the Companys customers to manage the
healthcare services of their members directly; changes in rates paid to
and/or by the Company by customers and/or providers; higher utilization
of health care services by the Companys risk members; delays, higher
costs or inability to implement new business or other Company
initiatives; the impact of changes in the contracting model for Medicaid
contracts; termination or non-renewal of customer contracts; the impact
of new or amended laws or regulations; governmental inquiries;
litigation; competition; operational issues; health care reform; and
general business conditions. Additional factors that could cause actual
results to differ materially from those reflected in the forward-looking
statements include, but are not limited to, the risks discussed in the
"Risk Factors" section included within the Companys Annual Report on
Form 10-K for the year ended December 31, 2015, filed with the
Securities and Exchange Commission on February 29, 2016, and the
Companys subsequent Quarterly Reports on Form 10-Q filed during 2016.
Readers are cautioned not to place undue reliance on these
forward-looking statements. The Company undertakes no obligation to
publicly revise these forward-looking statements to reflect events or
circumstances that arise after the date of this release. Segment profit,
adjusted net income, and adjusted EPS information referred to herein may
be considered a non-GAAP financial measure. Further information
regarding these measures, including the reasons management considers
this information useful to investors, are included in the Companys most
recent Annual Report on Form 10-K and on subsequent Form 10-Qs.

(1) For a more detailed discussion of Magellan Healths results for the
year ended December 31, 2016, refer to the Companys annual report on
Form 10-K, which will be filed with the SEC on, or shortly after,
Friday, February 24, 2017, and the live broadcast or taped replay of the
Companys earnings conference call on Friday, February 24, 2017, which
will be available at MagellanHealth.com.

(2) Includes stock compensation expense of $9,791 and $9,849 for the
three months ended December 31, 2015 and 2016, respectively, and $50,384
and $37,422 for the years ended December 31, 2015 and 2016, respectively.

(3) Includes changes in fair value of contingent consideration of
$(3,017) and $(614) for the three months ended December 31, 2015 and
2016, respectively, and $44,257 and $(104) for the years ended December
31, 2015 and 2016, respectively.

(4) Includes impairment of intangible assets of $0 and $4,800 for the
three months and year ended December 31, 2016, respectively.

(5) Net of income tax (benefit) expense of $(93) and $(17) for the three
months ended December 31, 2015 and 2016, respectively, and $(68) and $51
for the years ended December 31, 2015 and 2016, respectively.

(1) The Companys Annual Report on Form 10-K for the year ended December
31, 2016 will be filed with the SEC on, or shortly after, Friday,
February 24, 2017.

(2) Stock compensation expense, changes in the fair value of contingent
consideration recorded in relation to acquisitions, and impairment of
intangible assets are included in direct service costs and other
operating expenses; however, these amounts are excluded from the
computation of segment profit.

(3) The non-controlling portion of AlphaCares segment profit (loss) is
excluded from the computation of segment profit.

(4) Effective January 1, 2016, the Company implemented changes related
to the allocation of Corporate operational and support functions. These
changes were applied retrospectively.

(5) Healthcare subcontracts with Pharmacy Management to provide pharmacy
benefits management services for certain of Healthcares customers. In
addition, Pharmacy Management provides pharmacy benefits management for
the Companys employees covered under its medical plan. As such,
revenue, cost of goods sold and direct service costs and other related
to these arrangements are eliminated.